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What is GEO targeting and location advertising?

lcarscom by lcarscom
April 20, 2021
in Digital Marketing
Reading Time: 4 mins read
GEO targeting

Geo-targeting, otherwise known as local PPC, refers to the practice of delivering different content or advertisements to consumers based on their geographic locations. In paid search campaigns, geo-targeting is often used to advertise to local prospects.

Table of Contents

  • What is geo-targeting?
  • How does geo-targeting work?
  • Why should you use geo-targeting?
  • How to use geo-targeting for your business
    • Conclusion

What is geo-targeting?

Geo-targeting is the act of targeting users in the same geographic location in which you have a presence, regardless of where the user visits your website. It’s a great way to increase conversion rates and achieve an optimum ROI for your online ad campaigns with geographic exclusivity. 

Using geo-targeting as a paid search tactic allows you to provide your target audience with different products or content at different times or locations, thus making the most of your online ad campaign. 

You can now target users with powerful and highly accurate data and find the perfect customer for your products or services with household income, lifestyle, and needs as filters! If you have brick-and-mortar locations, you can direct a web visitor to the closest physical location to them.

How does geo-targeting work?

By geo-fencing your audiences, you can determine what type of products or services your target audience is most likely to be interested in, and you can deliver these to them based on their location. 

By delivering more targeted ads, you’ll receive a higher click-through rate (CTR) from your ads, which will, in turn, increase your sales. Geo-targeting also improves customer retention and customer satisfaction, as it’s more likely for customers to find your company and give you their business if they’ve seen an ad for it. 

Different methods to employ in geo-targeting include:

  • Use ‘Look-Back’ Data  – Geo-targeting allows you to send your message to people who are active users of your type of business. It’s as simple as looking up their location and sending out a marketing message right away!
  • Pinpoint Specific Locations
  • Market Across Channels – With OTT advertising, you can market to your target audience across devices. Whether on their home computer, their tablet or even on their TV, you’re able to reach your customers with a single ad.
  • Meet Pressing Needs – Does your company sell any personal protective equipment or other products that are in high demand right now? Now you can geotarget areas of the country where there may be a shortage of supply.

Why should you use geo-targeting?

Geo-targeting is a lot cheaper than other forms of advertising. There are many budget-conscious clients, in particular, in emerging markets where the expenses of advertising remain high and are often under budget, who are eager to find ways to maximize the benefits of advertising. 

This method has been proven to be more effective than its counterparts. Because the ad placement is more localized, advertisers can avoid using costly billboard ads that are based on national ad exchanges, which, in turn, saves advertisers from the need to pay commissions to all participating media players. 

How to use geo-targeting for your business

To understand how geo-targeting works, you first have to understand how a search engine works.  When someone conducts a search on Google, what Google does is, it collects all the web pages that are related to the search query that the customer is searching for. It then identifies the exact page that answers the user’s question and is designed to be visible to all those who are visiting the page.

However, this is not always the case. A website can be visited by numerous people, but one particular page can only be accessed by the people that visit the exact page that answers the user’s query. 

There are a variety of strategies you can use to optimize your local advertising

  • Find people who live in your area or are coming to your business in a few days. 
  • Find people who visit your Facebook page regularly and reach out to them to ask them to make a purchase in your store. 
  • Start a campaign that encourages customers to visit your website, check out the latest deals, make purchases, and sign up for your emails. 

It’s important to know that geo-targeting has its limitations. If you’re looking to reach a highly profitable segment of consumers, such as the local market, you might be better served with different methods. 

As with any paid media platform, to make money from geo-targeting you’ll need to find a strategy that works for your company.

Conclusion

The search marketing landscape has changed dramatically in the last decade, with consumers and brands now engaging in more and more search activities every day. With the increased complexity and increased competition, advertising budgets are still an important part of the overall marketing budget.

 Marketers are looking for new strategies to grow their business and take advantage of the increasing market share. One way to gain a competitive advantage and make a noticeable impact in the search marketing landscape is to leverage geo-targeting to deliver the right advertisement to the right people, no matter where they are.

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